“Real estate is an imperishable asset, ever increasing in value. It is the most solid security that human ingenuity has devised. It is the basis of all security and about the only indestructible security.” –Russel Sage
Real estate is one of the excellent ways to financial freedom. As a result of your endeavors, you will have a better leverage on your finances. Unfortunately, even when you do have the drive to succeed, pecuniary setbacks would often deter you from accomplishing your goals. There has never been any doubt that getting started in real estate investing would require money and if you lack capital, more often than not, you are out of luck. However, this does not mean that dabbling in real estate would be rendered impossible owing to your lack of funds. You do need to work a little hard and b committed to your cause. There is a myriad of ways to get started with investing even while you are building your capital and if you are lucky, you might even be able to invest sans the capital.
In any case, whether you are looking to invest on your first property in cloverleaf or elsewhere, here are some ways to get started while you build your capital:
- Working on your current job (or something like it)
If you are patient enough, you can build your capital by saving whatever you earn with your current salary. However, this takes a great deal of discipline on your part—so much so that you should learn how to curb your expenses. If your earnings are not that high, you might want to consider working overtime or at least taking side jobs doing things you have a natural flair at.
While wholesaling has been largely misconstrued as an investment, it is actually still working a job. It is not investing, but it does give you a little background on the comings and goings in the investing world. Wholesaling is an avenue for you to connect with buyers and sellers of distressed properties. However, as you do not necessarily have the funds to time the closing between buyer and seller, what you can do is to essentially charge a “finder’s fee” for being the middleman.
- Work as a referral agent
Although this is a relatively less-known practice, it is still an excellent way to create capital. One great advantage of being a referral agent over a regular real estate agent is that the former is a lot easier and requires much less of your time than a full-time real estate agent. All you would really need is a steady stream of connections which you can connect to real estate agents who you then charge a referral fee. This is one of the easiest jobs you can take to complement your current full-time job and it pays well as well.
If you no money of your own, find a partner that does have the financial resources. However, you need to be able to bring something to the table such as your exceptional skills in marketing or your connections. Remember to be meticulous with your partners, however, as you do not want to be stuck with a partner who would potentially swindle you or would cuckold you. Do not be willing to partner up with a stranger. Start business relationships with people you already know or at least develop a strong relationship with them first before partnering with them. Lastly, ensure that you are adequately protected by consulting a lawyer to ensure legalities are covered.